44 min ago4 min readBitcoin funding rate (CoinDesk data)SummaryThe three firms collectively hold shorts of 138,569 ETH (about $338 million) and 3,425 BTC (about $265 million) on Hyperliquid, according to Lookonchain, while Abraxas has pulled 73,872 ETH off Binance in four days.Funding has recovered sharply after months of compression: the 30-day average BTC perpetual funding rate hit 6.7% annualized on Aug. 24 and the 7-day average reached 8.7%, per Aegis.The trade extends to regulated venues, with CME bitcoin futures open interest climbing from roughly 87,000 BTC to 122,000 BTC, though CryptoQuant data shows hedge funds there have unusually flipped net long.When bitcoin rocketed from around $62,000 to above $77,000 in a matter of days last week, the move wiped out $3 billion from leveraged short sellers who had built up bearish bets during the prior drawdown. But for trading firms, the price hike presented an opportunity - one that had nothing to do with predicting where prices would go next.Major crypto trading firms, including Abraxas Capital, Fasanara Capital, and Wintermute, have quietly built what onchain data shows are hundreds of millions of dollars in short perpetual futures positions on Hyperliquid, the onchain derivatives exchange. Collectively, the three firms hold short positions of 138,569 ETH (roughly $338 million) and 3,425 BTC (around $265 million), according to onchain data tracked by Lookonchain.At the same time, Abraxas Capital has been pulling large amounts of spot crypto off centralized exchanges. On-chain data from Arkham Intelligence shows the firm withdrew 73,872 ETH — worth approximately $173 million — from Binance over the past four days alone.Collecting yield, not making betsThe strategy is known as a cash-and-carry, or basis trade, and it has become one of the most common yield-generating plays in crypto markets during bull phases. The mechanics are straightforward: traders hold a spot crypto position while simultaneously shorting an equivalent amount via perpetual futures. Because the two positions offset each other, the trader has minimal exposure to price movements. What they capture instead is the funding rate — a periodic payment that longs must pay to shorts when the market is bullish.BTC funding rates remain positive and elevated across major exchanges, at around 0.01% per 8 hours, according to Coinglass data. Aggregated perpetual funding rates are currently around 0.0109% per hour for bitcoin and 0.0087% for ether, according to Coinalyze. The annualized yield from collecting funds runs into the high single digits — meaningful income at the scale at which these firms operate.21shares Capital Markets noted this week that while the BTC basis remains rich, funding itself is sitting at what it characterized as standard levels — suggesting the trade is attractive but not yet overheated. Crypto protocol Aegis put more precise numbers on the recovery: the 30-day average BTC perpetual funding rate reached 6.7% annualized on Aug 24, while the 7-day average hit 8.7%.The trade had largely dried up over the preceding months. Data from Glassnode shows that bitcoin's annualized perpetual funding rate spent much of the February through July period compressed or negative, as the market sold off from all-time highs above $120,000 and leveraged longs were steadily unwound. When longs aren't paying shorts, the carry trade stops generating income, and in a negative funding environment, it can actually cost money to hold.This month’s surge changed that equation overnight. As leveraged short sellers were squeezed out by rising prices, funding flipped firmly positive, reopening the window for basis traders.The trade has also spread beyond bitcoin and ether, 21shares Capital Markets flagged on that the basis trade is now rich across the majors, with Solana among the assets seeing elevated carry.Institutional scaleThe trade is not limited to onchain venues. Open interest on CME bitcoin futures, the regulated exchange most commonly used by institutional investors, jumped from around 87,000 BTC to 122,000 BTC in recent weeks, according to Glassnode data.Notably, CryptoQuant data shows that hedge funds on CME have recently flipped net long on bitcoin futures — a rare development, given that the basis trade structurally keeps this cohort short. The shift suggests that at least some institutional players are making an outright directional bet on further upside, rather than simply running a market-neutral carry strategy.Aggregated open interest in ETH perpetuals has also climbed sharply, reaching $14 billion according to Coinalyze — a level not seen in several months — even as the price surge appears to be stabilizing.Crypto trader @LLuciano_BTC observed earlier this month that while funding has turned positive, bitcoin has been struggling to push meaningfully higher, a dynamic he described as fragile. When positioning turns bullish before price confirms the move, a breakdown could flush out longs while a breakout forces shorts to chase.Another trader, @misterrcrypto, flagged a related concern: with crowded leveraged longs building alongside the rally, the odds of a sharp flush or pullback increase if momentum stalls, which could disrupt basis positions on both sides.Still, for firms with the balance sheet and operational infrastructure to run the trade at scale, the current environment looks attractive. After months in which crypto markets offered little in the way of low-risk yield, the return of positive funding has brought the basis trade back to life — and with it, some of the most sophisticated players in the market.12345678910Anvil: The Missing Collateral LayerAnvil: The Missing Collateral LayerAnvil is a shared on-chain collateral layer built on a programmable letter of credit: reserve assets as a guarantee -no loan, no interest, keep custody & yield.Jul 29, 2026Anvil is a shared on-chain collateral layer built on a programmable letter of credit: reserve assets as a guarantee -no loan, no interest, keep custody & yield.Why it matters:Anvil is a shared on-chain collateral layer built on a programmable letter of credit: reserve assets as a guarantee -no loan, no interest, keep custody & yield.View Full Report